The success of your Homeowners’ Association (HOA) depends on the strength of your board of directors. The HOA board represents the best interest of homeowners and they protect the investments of the community. Managing the conditions and expenses of the community is a big responsibility. Mistakes are made even with the best intentions. Tampa HOA management companies are intimately familiar with HOA boards. In this first installment of our two-part series, we highlight some common mistakes we see. We will also give you tips to avoid these mistakes. Stay tuned for more mistakes and tips in Part 2 to of the series.
CONFUSING MEMBER ROLES
Understanding the HOA’s role along with the role of each board member is critical. Each officer must understand their specific role and duties in relation to the entire board to be effective. For instance, the board secretary should be aware of obligations that include organizing meetings, recording meeting minutes, keep records, and certifying voting results. To avoid this mistake clearly define each officer’s role and be sure they are held responsible for the execution of the role.
IGNORING GOVERNING DOCUMENTS
HOA governing documents are legal documents that cover association rules and regulations, articles of incorporation, and bylaws. They also cover declarations of covenants, conditions, and restrictions that members must follow. Instead, members may resort to managing the board the way it has always been managed. Members fail to realize that some of their actions may be against existing regulations in governing documents. To avoid this mistake, familiarize each member with your association’s governing documents.
MISMANAGING THE BUDGET
The board decides necessary expenses and the costs that come along with operation. Past budgets and costs should be assessed before making financial decisions. Funds should be earmarked for repairs, debt, and emergencies. In regard to collecting fees from homeowners, there should be a balance. Collecting too much can be a hardship for owners, and collecting too little will prevent you from necessary upkeep of the community. A Tampa HOA management company can help you avoid this mistake by assisting your association with accounting and bookkeeping services.
For information, please call us at (813) 968-5665, or submit our proposal request form.